The Ministry of Economy (MINEC) has made 100% digitized services available to encourage investments in El Salvador.
On Thursday, March 30, 2023, the Salvadoran Ministry of Economy launched the Procedures Streamlining System. This system is administered by MINEC’s Investment Directorate and is expected to facilitate the flow of investments in El Salvador.
The Minister of Economy, María Luisa Hayem, noted that the Ministry of Economy has succeeded in reducing the investment paperwork process from 31 to 10 procedures on this platform. In addition, the new digital window is available to investors 24 hours a day and can be accessed anywhere in the world.
“Response time to initiate investments in El Salvador has been reduced by 25%, and 100% of the services for our clients have been digitized, specifically for local and international companies, once again protected under our free zone regimes and international services law”, Hayem explained during his launch.
The official commented that past bureaucratic processes disincentivized new investment projects and greater job creation.
The Director of Investments, Clarissa Valdebrán, assured that the website “www.inversionista.economia.gob.sv” will be available starting March 31, 2023, for interested investors. Registering an email and a password will only be necessary to enter.
Within the website, entrepreneurs can modify their profiles, verify the documents they share through the platform, and carry out procedures related to audits, attorneys, shareholders, and paperwork.
Users of the system to promote investments in El Salvador will be able to carry out procedures for the qualification and granting of benefits for users of the free zone regime, production and commercialization or deposit, as well as the registration of national and foreign capital. They will also be able to carry out and administer the modification of lists of tariff items.
The director also explained that once each procedure has been completed, an agreement or resolution will be shared by email with the certified electronic signature of the Minister of Economy, which, she stressed, will guarantee the document.
Valdebrán confirmed that companies have already tested this system to encourage investments in El Salvador. She also indicated that the new system’s management training would begin in April.
More investments in El Salvador
The minister hopes that this tool will increase investments in El Salvador, although she clarified that this would most likely take some time. The management of MINEC assured that it works with companies interested in expanding operations in the country and others that are evaluating an entrance into the Salvadoran market.
According to the Salvadoran Central Reserve Bank (BCR), private investment increased by $757.1 million (14.7%) at the end of 2022.
Hayem indicated that the certified electronic signature is being promoted and that finance and technology are the most active sectors in its adoption.
The new window is the result of a national project to facilitate procedures. It results from the agreements reached with 13 institutions with which MINEC will cooperate.
What is on the new MINEC platform to promote investments in El Salvador
Director Valdebrán explained that both natural and legal persons can enter the platform. The processes carried out will include the certified electronic signature of the Minister of Economy.
1.- The profile option
Entrepreneurs may have access to verify their user data and update them. However, the Investment Directorate assured that the regime by which they are covered or wish to engage with must be identified.
2.- Access to documents
The MINEC platform offers the “Documents” option, described by the institution as “a virtual library,” where all the files attached to the stored applications are registered.
3.- Access to audit
During the presentation, Valdebrán assured that this module is important because it allows compliance with the obligations of free zones and international services to present operation reports.
4.- The attorneys
The platform requests to place all necessary information corresponding to the company’s attorney(s). The information is stored in the system and can be used in other procedures.
5.- Add shareholders
Those who access the system can add and access the information of each company’s shareholders who invest in El Salvador. The module represents part of compliance with the Free Zones Law and the International Services Law.
What benefits does MINEC’s platform offer parties seeking to invest in El Salvador?
The new platform implemented by the Salvadoran Ministry of Economy will facilitate investments in the country by offering users a tool that:
Saves time and money: Streamlining regulatory processes and reducing bureaucratic procedures can save time and money for foreign investors. It allows them to focus on their core business operations rather than being tied up in administrative tasks.
Increases transparency: Simplifying regulations and procedures can increase transparency and predictability, which can help investors understand the risks and rewards associated with investing in a foreign country.
Enhances competitiveness: By reducing red tape, countries can improve their competitiveness and attractiveness to foreign investors. This can lead to increased investment, job creation, and economic growth.
Improves ease of doing business: Reducing red tape can enhance the ease of doing business in a country, attracting more foreign investors. A favorable business environment can encourage companies to invest and expand their operations.
Improves investor confidence: Simplifying regulations and procedures can enhance investor confidence in a country’s business environment. This can encourage investors to invest in the long term and can lead to increased economic growth.